hi, everybody, welcome to "on the money." i'm maria bartiromo. happy labor day, everybody. we'll talk jobs and the state of the american worker, with the top labor official in the obama administration. will we have a bumpy september for the markets? taper talk, the new head of the fed, and the return of congress. what does it mean for your money? and buckle up. we'll find out what's fuelling ferrari. how is this luxury brand doing? we'll go for a spin. you won't want to miss it. "on the money" begins right now.

all right. coming up ahead, a look at the news for the week. here's bill griffeth. bill, over to you. >> thanks, maria. here's a look at what's making news. america's economy expanded as a much faster pace than first thought a huge revision in the second quarter gross domestic product showed the economy grew at an annual rate of 2.5%, revised up from 1.7%. better readings in export and better business investment were responsible for much of the revision. markets got off to a nervous start this week, having the worst day in more than two months. on tuesday, hitting a two-month low on concerns about american involvement in syria. stocks recovered, though, later in the week. america's housing market continues to improve, though at a slower pace. the kay-schiller index showed prices rising 2.2% in june from the previous month, and up 12% from the same period a year ago.

and americans just are not driving that much anymore. miles travelled peaked back in august of 2007. it dropped sharply during the great recession. and they have since plateaued, even though the economy has recovered. federal highway administration says that that number continued to fall in the first half of this year and analysts say the drop is partly due to the economy and partly lifestyle as more people choose to live in cities. watching syria, waiting for the fed, and just how is september shaping up? let's talk about it. joining me now are rick rieder, cfo at blackrock. they have about $632 billion under management and david gordon is head of research for the eurasia group. gentlemen, thank you both for joining me today. david, this long lead-up to whatever will happen in syria has certainly spooked the markets to some degree. what do you expect to happen here, and what impact will it have on the market longer term, do you think? >> yeah, i think -- i think you're likely to see u.s. attacks along with some french

components in the next few days, but i think these are going to be very restricted attacks. the obama administration has gone out of its way to really signal what they're going to do and what they're not going to do. i actually think the chances of a retaliatory escalation are pretty slim. so i suspect that we're going to see some -- actually some downward pressure on energy prices in the aftermath of these strikes. >> rick, initially, a lot of the safe havens moved higher, including oil, gold, bonds, as wellme men well. but 24i6 they've pulled back. >> the markets are assessing this as strategic, something that will be done quickly. markets have a one eye, certainly when you talk to the major market participants, as ourselves, people are saying, do

you see contagion, do you see others coming into this, russia, china, how they interface. by and large, the markets are assuming this will be reasonably strategic and fairly quick. and through it all, we have the possibility of tapering. i mean, tapering -- the threat of tapering pushes rates up. the threat of attack on syria pushes rates down. where do you think they're going? >> this is why you find a range. this is why the markets come close to what we would describe as fair value, getting closer -- the 10-year getting closer to 3%. we think ultimately rates are trending higher. the fed has distorted interest rates down. when 10s were in high ones, 25 basis points, you're getting closer to fair value. we drift higher. you've done a lot of the move so far. >> again, david, you don't expect peripheral damage -- i mean, one of the fears is unintended consequences in parts of the middle east, maybe a confrontation with russia.

you don't see that happening? >> yeah, i think the main risk here, if you're looking at who -- who might retaliate, it's not going to be the russians. it's iran. but iran really wants to hold its powder now, it seems to me, because they're looking to utilize a new round of negotiations with the west over their nuclear program to ease sanctions on them. i think they're really low -- the rhetoric aside -- to get into any esclatory over syria. >> the gdp revision earlier has good, and the personal income soft. what is the state of the economy in your view now? >> our view is the economy is in good shape. you have the headwinds you've had before. fiscal drag is abating, certainly you've had it over the last couple of years.

housing market is -- we're concerned about the near-term effect rate. we think the housing market, which is the primary driver of consumption, inflationary expectations, as well as hiring to a large extent, we think housing is in good shape. the lending mechanism can work. energy has been a big boone to the economy. we think the data will continue to be firm. but certainly seeing pullbacks at times. we think the u.s. economy, we're encouraged. >> richmond fed president jerry lagga laggard, he said the criteria the fed set up has already been met. >> i think the fed wants to get out of the quantitative easing business. it was put in place largely to go into fiscal cliff -- or the anticipation of the fiscal cliff at the beginning of the year. i think at this point in time it was foam on the runway back then. today, the transmission mechanism into employment is dull and forward guidance is a more effective way to manage

interest rates. >> rick, one more cloud on horizon in washington. we have a debt ceiling we'll hit. we were reminded earlier by lew the battle could get ugly. >> i do. i think there's a chance we'll get to the edge and potentially over. i don't think the market reaction -- i'm certain the market reaction won't be -- >> in august of '11. we remember that right. all of the volatility. >> absolutely right. the markets have come to the conclusion that if it happens it will be a lot of noise and you'll create near-term volatility, but not the duress you saw during that period of time. you about i do think it get contentious, and i don't think it will get extended. it will be an issue. >> gentlemen, thank you. rick reeder, dick gordon, thank you. now back to maria. >> thank you so much, bill. up next, we're "on the money." we can work it out. i'll be joined by the new secretary of labor, tom perez, on his new job and the jobs of all americans as we mark labor

day. and then, later, ferrari has revved up its sales here in north america, making it the most profitable unit at fiat. and this is my home team. this is my large lecture hall. this is my professor. and also my coach. this is my booster club. this is the guy who's graduating ready for a great career in technology. [ male announcer ] in 2012, 90% of devry university grads actively seeking employment had careers in their field in 6 months. join the 90%. learn how at devry.edu.

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and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger. all right. this labor day weekend, we are taking a deeper look at the state of the american worker and the sustainability of job growth in today's economy. labor secretary tom perez joins me in his first national television interview since being sworn in. mr. secretary, good to have you on the program. >> it's great to be here. >> congratulations to you. and thank you for spending time with us on your first national interview. were nominated by the president in march, just confirmed in late july. >> right. >> tell me about the priorities right off the bat. what's on your to-do list? >> jobs, jobs, and jobs. and my first 30 days or 45 days on the job here, i've been meeting people across the country, ceos, labor leaders,

people who are looking for work, community college presidents, to figure out, you know, how we continue to pick up the pace of job creation. >> when i speak to business leaders, that uncertainty about the rollout of obamacare, the uncertainty over healthcare reform, tax structure, everybody thinks we need new tax policy, that's what's hampering their decisions to hire. so you're a few weeks into the job. have you reached out to business? >> absolutely. and i've had some remarkably productive meetings with ceos across the country. for instance, recently, i was in nevada, and i met with the ceo of the largest public employer -- or the largest private employer in nevada, mgm. and we talked a lot about the partnership between mgm and other large private employers in nevada, and labor unions, to address the skills gap, to ensure that they have the workforce necessary to succeed. we also talked a lot about healthcare, because large businesses are large consumers

of healthcare, and he's doing remarkable work to bend that healthcare curve to make it more affordable. and that's been my mantra throughout my career, is listening and learning and finding common ground. and that's what we're doing now, and that's what we're going to continue to do. >> so do you think we'll see an ease-up on some of the rule making for business, that they will put that money to work? >> i think we're going to see, again, common sense coalition. that's what i used to talk about in maryland. let's bring common sense to bear. i categorically reject this notion that you either have job safety or job creation. that's a false choice. and i've seen it in my work. and when i talk to ceos, they tell me repeatedly about how the work that we have done in job safety is so critically important, because if there is no regulation, then it becomes a race to the bottom, and the employers who are playing by the rules get dragged down by the employers who aren't.

>> why do you think businesses are increasingly shifting null-time positions to part-time positions? >> well, i'm not sure the data is showing that. right now, maria. >> like, u.p.s. -- u.p.s. last week said they didn't want to insure the spouses of people who are insured if the spouse can get health insurance somewhere else. you know, other companies are saying, look, i have to watch the clock on my employees, because if they're full time, i have to pay them the benefits. i can't afford it. let's make them part time. it's been, in some cases, a negative, because it's too expensive, the healthcare. >> i think it's important to distinguish between anecdotes and the broad data. i'm a data guy. you look at jobs created. i hear this false premise that health reform is going to move everybody into part-time work. the data doesn't bear that out. over 90% of jobs that have been created since the implementation of health reform have been

full-time jobs. the focus on prevention that the affordable care act has is going to drive -- bend that cost curve, because all too frequently -- my brother's an e.r. doc, and also the primary care physician for too many people whose primary care physician is in the emergency room. we have to change that. >> what about the minimum wage? will we see it go to $9 in the president's second term? is that a capitol hill battle you're ready to take on? >> i hope the minimum wage will go up. i firmly believe that nobody who works a 40-hour week should have to live in poverty. i spoke to the ceo recently of, you know, a large retailer. you know he said to me i can have the lowest prices on that 70-inch flat screen, but if people can't afford to buy it, i won't be able to sell things. and i really believe that, you know, $7.35 an hour is not

sustainable. >> we have another jobs employment report coming out this friday. it will be closely watched, as everyone is trying to figure out what it says about the federal reserve and whether the federal reserve is going to begin tapering back the bond-buying program. what are you expecting -- and i know you've been traveling all over the country. where are the jobs? >> well, you know, i didn't bring my krystal ball with me, so i don't know precisely what the jobs report will say. >> your characterization. >> but here's what we do know. there's been 41 consecutive months of private-sector job creation. 7.3 million jobs have been created. you look at the auto industry. 343,000 jobs have been created since june of 2009. when it was at its lowest point. the president's investment in the auto industry has certainly paid off. so we see that the economy is slowly and steadily gathering steam. but the president would be the first to admit that we need to pick up the pace of the recovery, and that's why his

better bargain for the middle class, the investment in infrastructure, the investment in skills -- >> now, your parents were immigrants to the united states. >> they were. >> tell me about your priorities for immigration reform. how does that dictate how you approach your job? >> well, my mother grew up in washington heights, dominican immigrants. my dad is also dominican. if we want to talk about job creation, we want to talk about growing the economy, immigration reform is an indispensable part of the conversation. as you probably know, maria, i'm sure, the congressional budget office has talked about and documented the economic development impact of immigration reform. the social security trust fund is viable for two more years. gdp grossed -- we're, what, half a mile from ellis island and the statue of liberty. immigrants have been the engine of our economy for generations. >> you spent much of your career in labor and civil rights law, and here you are the labor secretary. you came from humble beginnings. what was your first job?

>> my first job was actually picking up golf balls at a golf course, and i worked for sears for five years and worked on the back of a trash truck for one summer. you do anything to make ends meet. >> i love to hear first jobs. i was the coat check girl and then stock girl. secretary perez, thank you for being here. >> thank you. >> up next, a 1957 ferrari sold for $27 million, the highest price ever for a vintage car. what's driving up the cost for the italian icon? marco is with me to explain the fast cars.

welcome back. ferrari gheeri inggearing up fo big year. sales rose 9% for the first half of 2013. and recently the company clutched a big win with its high blid race car -- hybrid race car. it sold out before hitting showroom floors. joining me now with a look inside the luxury brand, ultraluxury, is ferrari north america's ceo marco mattiacci. good to have you on the program. thank you so much for joining us and for bringing these things of beauties behind us. recently, a rare 1967 ferrari set a world record as the most expensive road car ever sold at auction. it was $27.5 million. >> yes, indeed. >> what does that say about the

ferrari brand versus others among the superluxury or luxury consumers? >> it's saying several things, that ferrari, three months ago, the most powerful brand in the world. people are investing in things that have variety, quality. >> so the last time you and i spoke, two years ago, i believe it was, you said almost 30% of ferrari sales came from the united states. making ferrari's number-one -- it's the number-one market, the u.s. is, for ferrari. how are your sales today? is it still that the u.s. is number one? >> it's still by far the largest market for ferrari, one of the most important. we have 35,000 customers. we sell almost 2,000 cars a year. but our focus is in quality, not in quantity. so we want to establish a great relationship with our customers to shorten the distance between us as manufacturer and our customer base. and making sure that it's the highest level as possible. >> you celebrated the 21st

anniversary of the challenge series, where ferrari owners can compete against each other. they're competing at world-class racetracks ending in italy. how well do the programs do? >> there are two different brands nowadays. most market brands are transactional brands and those that focus on the experience with the customer. these are people, the customer, that want to experience the adrenaline of racing the ferrari on the weekend, not to play golf, to talk with peers with the great affinity. we offer them exclusive platform with formula one coach, with an exclusive way. >> the first hybrid super car, 1.3 million le ferrari, only 499 were being made and they are completely sold out already. >> yes. >> that's amazing. >> it's a particular play, and we have only requests.

we want to focus on the fact these are the formula one department and the sleek car produced. plus we are exploring new way in the hybrid technology, so we have two engines, combustion engine, and (unintelligible), but guarantee ultimate driving experience like only ferrari can do. >> fantastic. we have the ff, f-12, and california. please show us. so this -- >> so here you see the hottest car of the moment, the f-12. >> hottest car? >> yes. >> the hottest car of the moment. look at this car. i feel like i'm in a luxury living room. >> so this is 740 horsepower, dual clutch transmission, automatic transmission, or you can use -- >> so -- i wondered that, if it was only stick shift, but you can do automatic. >> we don't produce stick shift anymore. this is coming from formula one experience, or you can put automatic.

>> all you do is press the button. >> yes. with ferrari nowadays, you can still have the most driving experience. but in an easier way. much more functional way. >> it's so beautiful. the design is really one of the best things about ferrari, right? >> the design. and every car we sell, 2,000 cars in the united states, there is no one car that's entering north america that is the same of the other, because there is customization, tailor made, you can see the carbon-fiber, so cars are spending 10%, 15% of the car to make it their own ferrari. >> tell me how fast it goes. >> in the u.s., we can go about 200 miles an hour. >> 200 miles an hour? >> 740 horsepower. 0 to 60 in three seconds. >> marco, good to you have on the program. thank you so much for bringing these beautiful cars, and we appreciate you joining us. >> thanks a lot. up next, we'll have the news for the upcoming week that will have an impact on the money.

we'll look at how the market ended the week as we take a spin here on wall street.

for more on our show and our guests, check out the website, otm.cnbc.com. i hope you will follow me

twitter and google plus. look for me @mariabartiromo. first, a look at what may impact your money this week. on monday, americans will celebrate labor holiday, and all of the markets will be closed. on wednesday, the federal reserve will release the beige book, which gives us a snapshop of the economic conditions across the country. on wednesday, the motor vehicle sales report is due. we will see if new car sales continue to surge in the month of august. and on thursday, g-20 leaders will convene in st. petersburg, russia. that will door it for me today. next week, byron wean of blackstone. we'll get his ideas of investing. keep it here each week where we are "on the money." have a great weekend, everybody. i'll see you again next weekend. : help the gulf recover and learn from what happened so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology,

like a new deepwater well cap and a state-of-the-art monitoring center, where experts watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger.

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